Microsoft, the tech giant, rose by 10.13% in Wednesday’s trading session, defying the trend of other stocks that benefited from planned tariff relief. The company’s gains were largely driven by a combination of factors, including job cuts and a shift to prioritize its workforce. According to reports, Microsoft is planning to cut middle management positions and non-coders, with a focus on restructuring its teams to achieve a better ratio of engineers to non-technical staff.
The layoffs are expected to start in May, just three weeks away, and may impact a significant portion of the company’s staff. However, coders will not be entirely exempt from the cuts, as performance will also be considered. Employees with lower rankings on Microsoft’s “ManageRewards” system may face redundancy.
On a separate note, Xbox fans can look forward to this year’s Xbox Games Showcase, scheduled for June 8. The event promises to feature product announcements and showcase new titles, including potential releases of Fable and Clockwork Revolution. Additionally, there is speculation about the possibility of next-generation console hardware, which could revolutionize the gaming industry.
Wall Street analysts have a Strong Buy consensus rating on Microsoft’s stock, with 32 Buys and three Holds in the past three months. The average price target implies 30.23% upside potential, considering the company’s recent 7.46% loss in share price over the past year.
Source: https://www.tipranks.com/news/middle-management-cuts-coming-to-microsoft-as-microsoft-stock-nasdaqmsft-surges